This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.

No Delay in Monday Swaps Deadline

Gensler rules out change to June 10 mandate for clearinghouse backing of swaps trades.

The Commodity Futures Trading Commission won’t delay enforcement of a June 10 deadline for swaps-market participants from hedge funds to small banks to start having their trades backed by clearinghouses, said Chairman Gary Gensler.

“They will be expected to clear come Monday,” Gensler told reporters today at a Sandler O’Neill & Partners LP conference in New York.

Swap-buyers represented by the Investment Company Institute, Securities Industry and Financial Markets Association, and Investment Adviser Association have requested a delay in enforcing the Dodd-Frank Act rule because of incomplete protections for collateral. The regulation is the second phase of clearing under the law intended to reduce risk in the swaps market.

Smaller banks subject to the deadline also have said they aren’t ready to meet the requirement and have requested a delay.

Copyright 2015 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Treasury & Risk

Treasury & Risk is an online publication and robust website designed to meet the information needs of finance, treasury, and risk management professionals. Our editorial content, delivered through multiple interactive channels, mixes strategic insights from thought leaders with in-depth analysis of best practices, original research projects, and case studies with corporate innovators.